The correct option is B does not shift
The forces responsible for the breaking of the body into two parts are internal forces, and in horizontal direction,
Fext=0 on the mass M.
Or, ΔxCM=0
Mg being the only external force acting on the system both before and after the breaking, acting in vertically downwards direction.
∴COM will continue moving vertically downward with acceleration g and there will not be relative shift of the COM of system towards either B or C.